Zambeef Products PLC
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer?
Zambeef is the largest integrated agribusiness company in Zambia and is quoted on both the Lusaka Securities Exchange and Alternative Investment Market (AIM) of the London Stock Exchange. Zambeef is involved in the primary production (maize, soyabeans and wheat), processing, distribution and retailing of animal feed, flour, poultry and other animal proteins throughout Zambia and the surrounding region. Zambeef plays a major role in food security in Zambia and the wider region by supplying the population with locally produced staples and proteins.
What is our funding objective?
FMO has taken an unfunded risk participation in a revolving working capital facility arranged and availed by Standard Chartered Bank (“SCB”). Zambeef will utilize the proceeds of this facility to finance the (1) primary production of maize, soya and wheat (purchase of inputs and storage of harvested crops) and (2) purchase of maize, soya and wheat from the open market.
Why do we fund this investment?
Zambeef plays a significant role in enhancing food security in Zambia and the broader region by supplying locally produced staples and proteins that are crucial for the growing population. Through an unfunded risk participation, FMO will assist Zambeef in accessing additional funding to bolster its cropping division. This will strengthen local-for-local production in Zambia and increase food security. Also, Zambia is categorized by the United Nations as one of the Least Developed Countries (LDCs), so this investment qualifies for a 100% Reducing Inequalities label.
What is the Environmental and Social categorization rationale?
The FMO E&S Category is B+. The E&S risks and impacts of this project are limited, site-specific, and can likely be readily addressed through generally accepted mitigation measures. E&S risks associated with Zambeef’s operations will be present in the supply chain, primary production (cropping), Agri-processing and distribution. The following IFC PSs and anticipated risks are considered relevant: PS1 (E&S management systems/ legal compliance), PS2 (Child/ forced labor; Worker Health &Safety), PS 3 (Climate risk, GHG emissions, water use, waste management, HCS), PS 4 (Transportation; Food Safety) and PS 6 (Impact on biodiversity; Animal Welfare). Raw materials are sourced from both Zambeef’s primary production operations and third parties. Supply chain risks associated with labor, biodiversity, and Animal Welfare will also apply. PS5 is not relevant as no plans for expansion requiring land purchases have been identified. Legacy land issues in Zambeef’s broader operations are being actively managed. PS7: Indigenous people and PS8: Cultural Heritage are not relevant.
More investments
| Date | Total FMO financing |
|---|---|
| 4/29/2022 | USD 7.50 MLN |
| 4/29/2022 | USD 5.00 MLN |
- Region
- Africa
- Country
- Zambia
- Sector
- Agribusiness, Food & Forestry
- Publication date
- 1/10/2024
- Effective date
- 12/5/2025
- Total FMO financing
- USD 10.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+